11 Common Rental Car Mistakes and How to Avoid Them

There’s one rental car factor that only age can influence: turning 25 typically makes it easier and cheaper to rent a vehicle. For everything else, careful planning can help you sidestep hidden fees and costly oversights.

Even seasoned travelers can stumble by neglecting the fine print, resulting in unexpected fees when renting a car. Here are some prevalent rental car mistakes and how to steer clear of them.

Exceeding the daily mileage limit

Not all rentals include unlimited mileage. For instance, U-Save Car and Truck Rental imposes significant charges if you go over the mileage specified in the policy for each location. If you rent from the Costa Mesa, California, location at John Wayne Airport (SNA), unlimited mileage is permitted only for travel within California (and Las Vegas with prior approval). Beyond that area, fees apply at 50 cents per mile.

Failing to pay tolls on your own

There’s no such thing as a complimentary toll payment, particularly when dealing with rental car companies. Have you ever cruised through a cashless toll in a rental vehicle without your own E-ZPass or another transponder and wondered how the charges would be handled?

Your rental car company will take care of it — but at a cost. For instance, Dollar Rental Car charged one TPG contributor $59.99 for a single toll. Most companies typically impose fees ranging from $3 to $10 per day, either as administrative fees (excluding toll costs) or as administrative fees that include toll charges.

Through its e-Toll program, Budget, for example, charges rental drivers in Florida a convenience fee of $5.95 per day, capped at $29.75 for the entire rental period (not exceeding 30 days), in addition to the tolls. To avoid this fee, drivers must ensure the toll transponder in the vehicle is disabled and that they settle the tolls directly at the booth or online.

To sidestep extra charges, it's best to bring your own transponder and decline the one offered by the rental car company. Many toll passes are valid across several states; for instance, the E-ZPass is accepted in 18 states. If you lack a toll pass for the state you’re visiting and it exclusively utilizes cashless billing, you might also be able to settle tolls online by using the vehicle's license plate number. Alternatively, you can register for a toll transponder through that state’s tolling agency before your trip.

Opting for rental insurance

If you already have a personal car insurance policy or a credit card that provides rental car insurance, purchasing additional coverage from the rental company could be an unnecessary expense. In one case, it resulted in a $200 mistake for a family who was already covered by both their credit card and personal car insurance.

When considering credit card coverage, ensure that your card issuer provides a primary collision damage waiver, that the type of vehicle you’re renting is covered (luxury and off-road vehicles often are not), and that the country you’re in is included (to avoid repeating this reader's rental car mistake). Keep in mind that credit card collision damage waivers do not cover personal injuries to you, your passengers, or pedestrians involved in an accident.

Collecting and returning the car at different locations

Modifying your rental car's drop-off point from where you picked it up can significantly increase your overall charges—potentially doubling or even tripling the fee.

Even if the two locations are just a short drive apart—like two different airports within the same metropolitan area, such as Boston Logan International Airport (BOS) and Manchester-Boston Regional Airport (MHT), or between major cities like Boston and New York City—selecting a different drop-off point can lead to additional rental costs.

While returning the car to a different location may suit your needs, it rarely works in favor of the rental car company. They will charge a substantial fee for the inconvenience.

Incurring charges for a late return

Rental car agencies like Avis calculate rental periods based on a 24-hour day. If you return the vehicle later in the day than when you picked it up, you may end up paying for an entire extra day, even if the difference is only a few hours.

Some rental companies offer a grace period ranging from 29 minutes to two hours after the specified return time, which means you might avoid extra charges or receive a lower hourly rate instead.

If you anticipate needing to return your car two hours later than your pickup, it’s advisable to set the return time to match the pickup time and utilize the grace period to avoid incurring a full day's charge.

With The Platinum Card® from American Express, you can enjoy a complimentary four-hour grace period when renting from Hertz with the appropriate discount code. This extra time can often prevent you from having to pay for an additional full day, resulting in substantial savings.

Using an online travel agency for bookings

While sites like Kayak may offer appealing low prices, they can lead to complications if issues arise. Booking directly with the rental company can simplify changes or refunds, saving you the hassle of dealing with a third-party site.

Additionally, some rental companies don’t allow you to earn loyalty points or rewards if you book through an OTA. If you hold elite status in a car rental loyalty program, you might miss out on your benefits when booking via an OTA.

Incurring costs for add-ons

Looking to include a car seat, GPS, satellite radio, or an extra driver with your rental? These additions can significantly hike up your total, often adding $100 or more to a multi-day rental.

For instance, a sample booking on Alamo's website showed that opting for all available extras—such as SiriusXM, a GPS device, carbon offset credit, and various child safety seats—resulted in an additional $117 for a two-day full-size car rental from Los Angeles International Airport (LAX).

You can avoid extra charges by choosing providers that don’t impose fees for these conveniences. For example, Audi on demand (previously Silvercar) offers free add-ons like child seats and additional drivers. Additionally, if you have a AAA membership, you can enjoy a free child safety seat and an extra driver at no cost when renting from Hertz, Dollar, or Thrifty.

Overlooking your rewards strategy

Travelers should be cautious: opting for frequent flyer miles instead of points through the rental company’s loyalty program isn’t always straightforward. There can be hidden fees that range from 75 cents to $1.50 per day.

Conversely, enrolling in a rental car loyalty program can help you bypass extra costs like fees for additional drivers, plus you may accumulate free rental days.

Be sure to explore your credit cards for benefits such as elite status with various rental car programs. For instance, the Capital One Venture X Rewards Credit Card, The Platinum Card® from American Express, and The Business Platinum Card® from American Express provide cardholders with top-tier Hertz President's Circle status as a perk.

You might even have the option to transfer your elite status from one rental company to another.

Eligible cardholders can enroll via the Capital One website or app and will retain their upgraded status until December 31, 2024. Note that enrolling through the standard Hertz Gold Plus Rewards process (such as at Hertz.com) won't automatically recognize cardholders for eligibility, and upgrades to the relevant status tier won’t occur automatically. Additional terms may apply.

Departing without inspecting the vehicle

Sometimes, all you want is to grab the keys and drive off. However, it's crucial to thoroughly inspect your rental car before departing. Ensure the tank is full (and if it's not, make sure to document it so you aren't charged for extra gas later). Additionally, take photos and videos of the vehicle, noting any damages like scratches and dents, and confirm these with an agent. Otherwise, you might face charges. Also, consider checking the vehicle identification number for details about the car's features and any recalls.

If you believe you’re renting a car with all-wheel drive, for instance, you’ll be paying a premium for that feature. Checking the VIN (which should be on your rental agreement) is a quick and simple way to confirm you're getting what you paid for. Plus, if you run into issues during your trip, prior recalls may help indicate that the problem isn't on you.

Returning the car with an empty tank

Always return the rental car with the gas tank at the same level as when you picked it up. Otherwise, the rental agency will charge a premium rate, which could cost more per gallon than just taking a few extra minutes to refuel at a local station. Also, avoid prepaying for gas, as this could lead to higher costs per gallon, and you won’t receive a refund for any unused fuel.

To truly maximize your savings, make sure you’re using a credit card that offers bonus points or cash back for gas purchases. For example, the Blue Cash Preferred® Card from American Express provides 3% cash back at U.S. gas stations*, while the Citi Strata Premier℠ Card (see rates and fees) rewards you with 3 points per dollar spent.

*Cash back comes as Reward Dollars, which can be redeemed as a statement credit or during checkout at Amazon.com.

Ignoring alternatives

Depending on your travel plans, a mix of public transport, ride-hailing services like Uber and Lyft, and even car rental alternatives such as Turo and Getaround could be more economical. If you only need a vehicle a couple of times during your trip, consider skipping the rental car and opting for these other services instead.